Amazon to Drop USPS as It Builds Its Own Delivery Empire

In yet another sign of how broken our government-run systems have become, Amazon is preparing to cut ties with the U.S. Postal Service (USPS), ending a partnership that once pumped over $6 billion annually into the struggling federal agency. According to insiders, the e-commerce titan is poised to remove all its parcel volume from USPS by the end of 2026.

For context, USPS has already been circling the drain for years. Since 1997, first-class mail volume has plummeted by 80%, and the agency is now reeling from a $9.5 billion loss just last year. Its business model is outdated, bloated by union inefficiencies and government red tape.

Meanwhile, Amazon is doing what any successful private company does cutting out the dead weight and building its own infrastructure. Here's what that means:

• Amazon Logistics handled 6.3 billion parcels last year, just behind USPS’s 6.9 billion, and is projected to surpass them by 2028 possibly earlier if this split accelerates.

• In April, Amazon announced a $4 billion investment to expand its rural delivery capabilities.

• Unlike USPS, Amazon runs a largely non-union workforce, keeping costs down and operations agile.

This move isn't just about efficiency it's a loud indictment of how ineffective our federal agencies have become. While USPS was scrambling to rewrite sweetheart deals under “negotiated service agreements,” Amazon walked away. Talks reportedly collapsed when Postmaster General David Steiner tried to shift priority away from major players like Amazon and toward small businesses. Admirable in theory, but suicidal in practice.

Worse still, this collapse happened under a Biden-appointed administration that seems more interested in scoring political points than making sound business decisions. Instead of streamlining the agency, they're considering extreme moves like merging USPS with the Commerce Department an idea President Trump correctly criticized as absurd and damaging.

Let’s be honest: USPS needs Amazon far more than Amazon needs USPS. And now that Jeff Bezos’ juggernaut is nearly self-sufficient, the writing is on the wall.

While Amazon isn’t the perfect company especially given its past political leanings this decision is a classic case of private innovation outpacing government decay. It’s a reminder that free markets work when allowed to operate without interference from the bloated hand of Washington.

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